Buy Tata Consultancy Services; target of Rs 4821: Geojit Financial Services

Geojit Financial Services is bullish on Tata Consultancy Services has recommended buy rating on the stock with a target price of Rs 4821 in its research report dated July 17, 2024.

Broker Research

July 18, 2024 / 13:07 IST

Buy

26 Aug, 2025 12:21

Volume

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Geojit Financial Services research report on Tata Consultancy Services

Tata Consultancy Services (TCS), a subsidiary of Tata Sons Ltd, is a global IT company providing a range of services to industries such as banking, financial services and insurance (BFSI); telecommunications; transportation; retail; manufacturing; pharma and utility. Revenue in Q1FY25 grew 5.4% YoY in rupee terms, +3.9% in dollar terms and 4.4% in constant currency (cc). Resilient growth across major geographies aided the revenue growth. However, verticals saw muted performance. EBITDA margin improved YoY on better productivity and utilisation. The company delivered stable performance in Q1FY25. But the performance is expected to get a further boost through strengthening its workforce and enhanced order book through new deals wins. Overall, the company is expecting a pickup in demand in medium term.

Outlook

Hence, we retain our BUY rating with a revised target price of Rs. 4,821 using a target multiple of 30x P/E on FY26E adj. EPS.

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